International Money Transfer Organizations: How They Work

Overview

Cross-border money transfers connect senders and recipients around the world. They are typically facilitated by banks, money transfer operators (MTOs), and fintech firms that use payment networks to move funds and convert currencies. The main players include traditional banks, large MTOs like Western Union and MoneyGram, and online services such as Wise, Remitly, WorldRemit, and PayPal's Xoom. Each has its own mix of fees, speed, and supported corridors.

Types of providers

• Banks and bank networks
• Money transfer operators (MTOs)
• Online remittance services and fintechs
• Mobile money and cash pickup networks

How money moves across borders

Sender funds are transmitted to the provider via bank transfer, card payment, or mobile payment. The provider uses clearing networks (such as SWIFT) or local payment rails to reach the recipient’s bank or cash pickup point, often converting currencies along the way. Transfers can be instant or take hours to several days, depending on the corridor and service.

Fees, exchange rates, and speed

Fees can be fixed, percentage-based, or a combination. Exchange rates usually include a markup or margin over the mid-market rate. Speed varies: some transfers arrive within minutes, others in 1–3 business days, depending on method and destination.

Safety, compliance, and privacy

Regulated providers are required to follow anti-money-laundering (AML) and know-your-customer (KYC) rules, keep customer data secure, and honor dispute protections. Always use official apps or websites, verify recipient details, and beware of scams that imitate legitimate providers.

Choosing a provider

• Compare total cost: fees plus exchange rate difference
• Consider delivery speed and available methods (bank transfer, card, cash pickup)
• Check supported corridors and payout options
• Review reputation, licensing, and customer protections

Practical tips

Test a small transfer first to verify timing and reliability, and ensure the recipient can pick up funds in their area if cash pickup is needed.

FAQs

• How do I know which provider offers the best rate for my corridor?
• Do all providers support same-day transfers?
• Are there limits on how much I can send?